FMC for more market makers, aggregators in futures market

MUMBAI: The Forward Markets Commission and the Advisory Committee which met here today for the first time have agreed to increase the participation of market makers and aggregators in the futures market to boost liquidity.

"We have agreed to increase the number of market markers and aggregators (who hedge in futures market on behalf of farmers) that will help in bringing more liquidity in the futures market," FMC Chairman Ramesh Abhishek told reporters.

The Advisory Committee was constituted by the Ministry of Consumer Affairs, Food and Public Distribution to advise the government and the FMC on futures market in commodities.

Talking about re-listing of guar gum and guar seeds in the futures market, he said, the Advisory Committee was of the view to re-introduce it.

"We have considered the view of the Advisory Committee to re-list guar gum and guar seeds. We are yet to seek view of some government agencies before announcing the final decision. It will be soon," he said without giving any time frame.

The local commodity exchanges had stopped trading in guar in March futures amid a regulatory enquiry after prices had soared more than 10-fold.

Talking about illiquid contracts, he said: "The FMC is taking a view on this. We are not in favour of allowing illiquid contracts year after year. The FMC may set up some minimum performing standards for these illiquid contracts. We have already identified about 15-20 illiquid contracts on which we have to take a view soon," he said.